Nyfe, Comex End Discussions

January 05, 1985

The New York Stock Exchange and the Commodity Exchange said they have ended talks on a joint futures-trading venture. The two exchanges had been discussing since early 1984 the possibility of bringing the NYSE`s New York Futures Exchange unit to the floor of the Comex in New York`s World Trade Center. A Comex spokesman said Friday that the exchanges reached an

``impasse`` in the talks. He confirmed that the Comex was considering buying a 50 percent interest in NYFE, but he wouldn`t comment on reports that the Comex had offered to pay $5 million for the stake. NYSE Chairman John Phelan said last month that he expected an agreement with the Comex by early 1985, but sources said exchange directors couldn`t agree on how much of NYFE`s ownership to shed. An NYSE spokesman said the exchange will seek ``the continued strengthening`` of NYFE, which has failed to attract the business in financial futures that the Big Board had expected. The spokesman said the NYSE is continuing to discuss the possibility of joint ventures with other exchanges, which he declined to name. Joseph O`Neill, president of the New York Cotton Exchange, said he has held a ``preliminary`` discussion on the relocation of NYFE.